Good Practice

Raising Funds

For Portuguese and Spanish versions, please see below.

This article sets out a step-by-step process for evaluating the most suitable source of funding for an incubator itself (or an incubated enterprise), and how best to proceed.

Objectives

This Guideline outlines a clear and effective strategy for identifying and negotiating with entities that provide financing or investment funds that contribute to the development of the incubator or the tenant companies.

Key Issues

Potential Projects: Detailed analysis of the Incubator’s Business Plan and Strategic Plan, to identify the main elements that require funds and which might attract the interest of agencies involved in fund raising and financing. The result of this stage is a list of potential projects that could be the target of fund-raising.
Responsible party: Incubator Director(s)
(See attachment Table for Identifying Potential Projects)
Potential Partners: Identification of entities with the potential to sponsor, finance or invest in the project in question, outlining their objectives and form of operation, and a contact person. A survey should be carried out primarily through the Internet and through contacts with partners having experience in the relevant field.
Detailed Survey: on projects already supported, with the aim of identifying priorities and opportunities for raising funds by the incubator.
Responsible party: Technical Team
(See attachment Table for Identifying Potential Projects)
Analysis and Next Steps: Analysis of the survey information and decisions on the presentation of a proposal for funding.
Responsible party: Director(s) of the Incubator and Technical Team
(See attachment Table for Identifying Potential Projects)
Summary Proposal: Preparation of a summary proposal for funding the project, aimed at clearly establishing the project concept, principal benefits and requirements.
Responsible party: Director(s) of the Incubator and Technical Team
First approach: Approach the supporting entity to establish first contact and define the negotiation process. This approach should be made by those responsible for the allocated project area, using potential strategic partners of the incubator to establish an appropriate channel of communication.
Responsible party: Director(s) of the Incubator and Technical Team
Preparation of the Proposal: In the event of a successful first contact, with confirmation of potential support, proceed to the preparation stage of a detailed proposal, in accordance with the procedures established by the supporting entity.
Analysis Process: Having completed the Proposal, the process of analysis, negotiation and approval begins. The time required for this stage will depend upon the supporting entity’s approval process, their attention and availability.
Contract Phase: Clear definitions of responsibilities, timetables, issues relating to industrial property, financial disbursements, etc. are required for the project contract.
Execution: Following the contract phase is the execution phase, which encompasses monitoring, follow-up and evaluation on the part of the supporting entity.